I don't think people understand solvency. Being insolvent means that your debts exceed you assets. Liquidity is something different. You could be insolvent and still be liquid, which means that while you can't pay all your debts, you still can pay the ones currently due.
Bankruptcy unfolds slowly because people can manage to stave off the inevitable by manipulation.
Look at the numbers:
If you want to look at it collectively, the federal government owes the equivalent of $52,400 per citizen for the $17 trillion of bonded debt, but it also owes the equivalent of $390,000 per citizen for unfunded promises like Social Security, Medicare, and federal retirement benefits. The amount needed from each citizen to pay his theoretical share of the debt adds up to $442,400 and the interest each year (at unusually low rates) is $10,500 if it isn't paid. That is on top of an average of $50,000 that each citizen owes in private debt, and state debt is on top of that.
But, if you are evaluating solvency you look at the person or organization you are evaluating. You don't look at Joe Smith and count Joe Blacks assets in deciding if Joe Smith is insolvent. When you say that the US is full of wealth, that is true. But that wealth does not belong to everyone. One man's wealth isn't available to pay another man's debts. And even one man's wealth isn't available to pay the government's debts unless you want to destroy the nation entirely by confiscating everyone's wealth to pay the governments debts.
The federal government is broke. It can either default directly by saying sorry, and not sending out checks, or it can destroy the value of money, effectively taking away the purchasing power of the money you hold, impoverishing you, in order to keep itself in operation.
The structure and continuation of the current monetary requires that the economy grows. This is so because interest is an extraction of wealth from debtors to enrich creditors. Borrowing simply mortgages future income. It is estimated that 30% to 40% of the GDP each year is transferred into the hands of bankers under the Federal Reserve fractional reserve banking scam. People, businesses, and governments are the debtors, but if they can't get their hands on more wealth, the system breaks down and default eventually occurs. When debt can't be repaid, it must be refinanced and new borrowing funds interest payments when even the interest can't be paid, as is the case with federal debt today. And when this occurs the debt compounds. That means is doubles every X number of years depending on the interest rate.
The economy can't grow. We are entering a new paradigm of long term economic decline. Why? Because the cost to acquire energy has followed a compound growth curve and this means that each year more energy is used up just to acquire more energy, leaving less net energy to fuel the economy. In prior times, this was disguised because total energy production was compensating for the loss, but now that energy production is stagnating, the cost problem is moving tot he forefront. In the early days of energy extraction the costs were very low, so doubling a low cost was still something low. But if you follow the progression of doubling of cost, eventually the absolute increases become huge. (1x2=2; 2x2=4; 2x4=8; 2x8=16; etc., you get the picture).
So yes, the USA is broke and broken.
"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.
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